On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,700. Woodstock also paid $1,350 for transportation and installation. The expected useful life of the machine is 5 years and the residual value is $5,350. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?

The annual depreciation expense is $7,340.

The December 31, 2016 book value was $34,710.

The December 31, 2017 book value was $22,020.

The December 31, 2018 accumulated depreciation balance was $22,020.